The latest Halifax House Price Index shows that house prices held firm ahead of the Autumn Budget. November’s average UK price remained at £299,892, unchanged on the month, with annual growth at +0.7%.
Halifax described 2025 as “one of the most stable years for the housing market over the last decade”, noting that values “remained steady” even as activity slowed before the announcement.
Regional variations
There were some marked regional variations. In the North West, prices rose by 3.2% year-on-year, in Yorkshire and the Humber they were up 1.8%, in the East Midlands by 1.4% and in the West Midlands they went up by 1.3%. In contrast, London recorded a yearly fall of –1.0%, with small declines also reported in the South East and Eastern England.
Affordability improves
Amanda Bryden, Head of Mortgages, Halifax, adds: “Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.
“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”
Reacting to the report, estate agents have hailed the remarkable stability of the market but say the hiatus is now over and are reporting a strong bounce-back in buying activity. First-time purchasers are returning in significant numbers as mortgage options improve, and searches and enquiries have increased significantly as buyers who paused in November resume their pre-Budget plans.
Bounce-back
Amy Reynolds, head of sales at Antony Roberts, said the shift was immediate. “Our Saturday diaries are full for all our offices, and our most expensive properties have had a new lease of life with viewings booked for most of them and even a second viewing on one already.
“There is more optimism and a feeling of relief now that the Budget is over. Fixed-rate mortgages are slowly heading towards 3.5 per cent, and there are better options available, including cashback offers for first-time buyers.”
She also adds that after a quieter run-up to the Budget, “we have seen some good houses this week with immediate instructions”, indicating sellers are also re-engaging.
Former RICS residential chairman, and north London estate Jeremy Leaf, says:
“While some worried about Budget measures and put plans on hold. Fortunately, enough buyers and sellers have confidence in the longer-term prospects of the housing market and continue with their plans regardless.
“With inflation appearing to have peaked and the direction of travel for interest rates set to be downward in the coming months, there are brighter times ahead.”
Rate expectations
And Iain McKenzie, CEO of The Guild of Property Professionals, says: “Now that the Budget uncertainty has passed, we expect both buyers and sellers to re-engage with renewed confidence.
“All eyes are on the upcoming interest rate announcement. If the Bank of England moves to reduce the rate later this month, that would provide a welcome boost heading into the key spring 2026 selling season.”
